IPO Analysis: Epack Durable Ltd.

IPO Analysis of EPACK Durable Ltd.

EPACK Durable Limited (EDL) is the second largest room air conditioner original design manufacturer (“ODM”) in India in terms of number of units (indoor units + outdoor units) manufactured in Fiscal 2023 through the ODM route. It is a customer-centric business driven by a focus on continuing innovation and operational efficiency. Driven by its focus on product development and innovation, it evolved into an ODM partner for RACs for its customers. It also identified the opportunity to increase its value addition in its offerings to customers, and accordingly, started manufacturing of various components such as sheet metal, injection moulded, cross flow fans and PCBA components which are actively used in the manufacturing of RACs. In parallel, EDL capitalised on its existing manufacturing infrastructure to strategically expand its operations in the small domestic appliances (“SDA”) market, particularly considering the seasonality of the demand for RACs, and currently design and manufacture induction cooktops, mixer- grinders, and water dispensers. This evidences its continued focus on the backward integration of its operations and diversification of its revenue streams.

EDL’s product portfolio currently comprises the following: Room air conditioners: It design and manufacture complete RACs, comprising (i) window air conditioners (“WACs”), including window inverter air conditioners, (ii) indoor units (“IDUs”) and (iii) outdoor units (“ODUs”, which combined with IDUs form split air conditioners (“SACs”)) with specifications ranging from 0.75 ton to 2 ton, across a range of energy ratings and types of refrigerants. It also manufacture split inverter air conditioners.

Small domestic appliances: It currently design and manufacture induction cooktops, mixer-grinders, and water dispensers.

Components: EDL manufactures heat exchangers, cross flow fans, axial fans, sheet metal press parts, injection moulded components, copper fabricated products, PCBAs, universal motors and induction coils for captive consumption as well as part of its product offerings to its customers.

EDL has dedicated R&D centres in Greater Noida, Bhiwadi and Dehradun, which are equipped with various equipment such as endurance test labs for RACs and SDAs, induction coil - automatic voltage tester, induction coil – breakdown tester, needle flame tester, customized glow wire tester. The number of employees in its R&D department has grown from 30 employees as of March 31, 2021 to 57 employees as of September 30, 2023. Its R&D activities focus on basic research, the development of new products and manufacturing methods, the optimisation of existing products and manufacturing methods and process improvements, as well as environmental protection and energy efficiency. It commenced its operations with a single manufacturing unit in Dehradun, Uttarakhand in 2003, and has since expanded its manufacturing operations with Dehradun Unit II, Dehradun Unit III and Dehradun Unit IV, its Bhiwadi Manufacturing Facility and Sri City Manufacturing Facility.

EDL has three vertically integrated manufacturing facilities, enables it to maintain its operational costs and logistics management. It benefits from its single site manufacturing capabilities, where the manufacturing of components and product assembly takes place in one location. It has the highest amount of backward integration for RACs at a single location, that has been grown within the same company organically in India. Moreover, given the manufacturing infrastructure that it had in place for manufacturing of RACs, it was in a position to leverage its extant manufacturing capabilities for its SDA products as well, thus saving it from incurring potentially high capital expenditure that is typically associated with product portfolio diversification strategies. It has established long-standing relationships with various established customers.

EDL Promoters have over 100 years of cumulative experience in the electronics manufacturing industry, and a demonstrated ability to successfully create, build and grow businesses. It relies on the experience and leadership of its Promoters for its growth and development. It is supported by its experienced and diversified Board and its well-qualified senior management team, which enables it to capture market opportunities, formulate and execute business strategies, manage client expectations as well as proactively manage changes in market conditions.

Industry Research:

The Indian government has been promoting structural reforms, such as a focus on infrastructural development, disinvestment, and higher FDI limits, while also working on a national logistics policy. These reforms have been critical for accelerating the post-pandemic economic recovery.

An interesting trend has been observed that the per capita income of most of the economies grows at a faster pace after reaching the inflection point of USD 2,000. It has also been observed that this event generally has a positive effect on the consumer electronics market. India reached this very important milestone of USD 2,000 per capita income in CY2020 and has the potential to achieve USD 10,000 per capita income or a USD 20 trillion economy by the year 2047 if it manages to accomplish a sustained growth rate of 7–7.5%.

The prime objective for Production Linked Incentive Scheme for White Goods (PLIWG) (Air Conditioners and LED Lights) include removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation. Only manufacturing of the components of Air Conditioners and LED Lights will be incentivized under this scheme. 90% of Bill of Material (BoM) for ACs and 87% of BoM for LED Lights are covered under this PLI scheme. This will increase in-country value addition from 20% to 85% and create a robust component ecosystem for these industries. Over the next 5 years, the scheme is estimated to lead to a total production of about INR 2,710 billion of components of ACs and LEDs. The scheme will bring further investment in component manufacturing eco-system of ACs and LED Lights industry to the tune of INR 59 billion.

Indian consumer durable market segmentation by product categories
Room Air Conditioners (RAC): Penetration of RACs in Indian households is around 8% in 2022, implying that there is considerable scope for growth. Indian RAC market is highly fragmented with varied set of players – global, indigenous and importers – selling a wide range of products in the market.

Television: The TV industry has seen dramatic technological advancements over the last decade. TV penetration in India is approximately 65%, which is the highest among the consumer electronics. Television is one of India's fastest growing consumer electronics products.

Refrigerators: Penetration of refrigerators in India currently is around 33%, implying sufficient head room for growth. The refrigerator market is expected to grow at a rate of 13.5% between FY23 and FY28.

Washing Machines: Indian washing machines industry has been witnessing sustained and stable growth. Increasing appreciation for the value that the product delivers, affordable pricing, and innovative products has aided the strong growth of washing machines in India.

Level of localization across consumer durable industry in India

The Indian consumer durables industry has seen supply-chain disruption in all major product categories because of heightened supply chain localization. Localisation of components for air conditioners, TV, washing machine, refrigerators, etc, at scale, can help cut the cost gap with China and can also help stir up the micro, small, and medium enterprise (MSME) sector. The government’s refined duty structure has also led to encouragement of backward integration of the production component amongst the manufacturers, with a stronger push towards domestic manufacturing. Incentives offered by the government in the form of PLI scheme, Industry Development Policies, etc. is going to provide a necessary boost to the much-needed localization in India. Imports of consumer electronics have been decreasing and exports have been rising in India, and this trend is expected to continue. Many companies, domestic and international, have made substantial investments in setting up manufacturing bases in India, to cater to the large domestic market and to take part in the global supply chain.

Introduction to Original Design Manufacturer (ODM) model

Under this model, ODM companies design products as per the high-level specifications or product requirements shared by the brands. ODM companies then source components, carry out fabrication and assembly, test the final product, and undertake logistics and after sales services related activities in some cases. This model helps the ODM companies to have deeper and long-term business relations with the brands. This is a high margin business and comes at a premium for good designs.

Emergence of ODM Model in the Consumer Durables industry

Globally, the consumer durables market is competitive, and manufacturers are constantly exploring new ways to optimize their production processes and reduce costs. Hence, brands have started to engage ODM players to leverage their manufacturing capabilities and cost advantages. ODM companies are becoming globally relevant today due to several key factors such as:

Globalization and Market Expansion: ODM companies provide an efficient and cost-effective solution for companies to access global markets. By leveraging the manufacturing capabilities of ODMs, companies can quickly enter new markets and meet the demand of international customers.

Cost-Effectiveness: ODM companies are often located in regions with lower production costs, such as China, Southeast Asia, and other emerging economies. Outsourcing production to ODMs helps companies remain competitive in the global marketplace by accessing affordable manufacturing without compromising on quality.

Time-to-Market Advantage: ODM companies have streamlined processes and efficient production capabilities, enabling companies to reduce their time-to-market. By partnering with ODMs, companies can accelerate their product development cycles, respond quickly to market demands, and gain a competitive advantage in fast-paced industries.

Supply Chain Management: ODM companies have established extensive networks of suppliers, manufacturers, and distributors across different regions. This capability simplifies the logistics and reduces the complexities associated with global manufacturing and distribution for companies.

Manufacturing Expertise: ODM companies specialize in manufacturing and have developed expertise in producing a wide range of products. This expertise ensures that companies receive high-quality products that meet international standards.

Technology adoption: Technology and product dynamism in the consumer durables industry necessitates ongoing investments in innovation. Indian Consumer Durables ODM market has been estimated at approximately INR 300 billion FY23. Television is the largest segment accounted for 49% market share, followed by Room Air Conditioner (19% share), Washing Machines (9% share), Refrigerators (7% share), and small and other Domestic Appliances (16% share).

Growth drivers of Indian RAC market
Air conditioner is no more a luxury, but a necessity: Due to enhanced purchasing power and increasingly erratic climatic conditions in India, air conditioners are no more considered a luxury but a necessity among most middle-class Indian households.

Growth in residential construction: Driven by the sustained demand for housing and supportive government policy, residential construction is expected to grow at a 6.5% CAGR till 2030, according to a Fitch 2021 report. A strong residential supply pipeline is expected to create strong demand for RAC in the short-to-medium term.

Growing purchasing power: India’s per capita income has steadily grown from USD 1,351 in 2010 to USD 2,379 in 2022 at a CAGR of 4.8%. Due to this, India in the last few years has seen a significant expansion of middle-class households which is the key demand generator for Room Air Conditioners.

Availability of Financing options: A key deterrent in RAC adoption among Indian households is the very high price of the product. The availability of financing options thus made RAC affordable to a large section of Indian households. This has reduced immediate burden on consumer’s wallets and allowed them to pay the amount over a long period.

Significant reduction in load shedding across India cities and towns: Due to investment across the power sector value chain, the energy deficit in the country has declined from more than 10% a decade back to only 0.5% in FY23. The load shedding scenario has also improved drastically in Indian cities and towns – from 6 to 8 hours in the summer months a couple of decades back to less than one hour or no-load shedding on some days.

Climate change and rising temperature: Climate change has resulted in longer, more intense heat waves during the summer, forcing India to balance its cooling requirements. As temperatures have gone up, there has been a sharp rise in the demand for cooling products, especially air conditioners and air coolers.

Right to Win for ODM companies in the Indian RAC manufacturing industry
Backward integrated operations (most of the bill of materials manufactured in-house): Fully backward integrated operation helps the ODM companies to have a higher control on the input costs which in turn helps them in maintain sustainable margins.

Large-scale manufacturing (for cost-efficiencies): Economies of scale result in cost advantages reaped by companies when production becomes efficient, resulting in a decreased cost-per-unit.

Ability to innovate – provide design related solutions: Innovation helps the companies to develop new designs and achieve process efficiency which in turn helps the companies to grow profitably. Company’s ability to sell its designs to the brands and earns premium for the service.

Strategic location closer to consumers: Staying closer to the consumers helps the ODM Companies on multiple fronts. It reduces the company’s logistics costs and helps the companies to serve its customers faster and in an efficient way.

Ability to manufacture variety of designs / multiple SKUs: As the RAC market is growing, brands are launching multiple models / variants / SKUs through different channels to attract customers. Brands have the limitation to develop multiple variants in-house within a short period of time. All the factors mentioned above i.e., backward integrated operations, large-scale manufacturing that requires significant capital investments, technological prowess, innovation capabilities, and ability to manage multiple SKUs create a strong entry barrier for a new company to enter into RAC manufacturing. This creates opportunities for the existing companies to further invest in capacity expansion, backward integration, and innovations. Besides, such integrated capabilities of the ODM companies make switching difficult for the brands. Switching cost for the brands increases as the ODM companies not only manufacture the products but also controls the designs – this increases the stickiness of the brands as new product introduction and development is a complicated and lengthy process for both the brands and the new ODMs. This in turn helps the existing ODM partners to maintain a sustainable and profitable business in the long run. As the Indian RAC market is growing, retail giants such as Reliance, Croma, Flipkart, etc. and other small brands like Onida, Cruise, etc. are creating their own labels and trying to capture a pie of this growing business. These companies do not have any plans to invest in manufacturing, and hence would create significant ODM opportunities for companies. 

Investment Rationale:

Long-standing relationships with established customers, with potential to expand the customer base: EDL has over the course of its business operations established long-standing relationships with several wellknown Indian and global customers. Some of its customers for its RAC products include Blue Star Limited, Daikin Airconditioning India Private Limited, Carrier Midea India Private Limited, Voltas Limited, Havells India Limited, Haier Appliances (India) Private Limited, Infiniti Retail Limited and Godrej and Boyce Manufacturing Company Limited, and the average length of its relationship with these customers is 8.7 years. Some of its customers for SDA products include Bajaj Electricals Limited, BSH Household Appliances Manufacturing Private Limited, and Usha International Limited, and the average length of its relationship with these customers is 6.3 years. It attributes its growth and expansion of market share to date to its relationships with its customer base and intends to continue to leverage such relationships for future growth as well.

Being a key supplier and establishing long term relationships with many of EDL’s customers demonstrates its ability to maintain customer stickiness and strong delivery capabilities. Moreover, acquisition of customers in the RAC and SDA industries requires persistent and continued investment of time, effort, and capital. It has sought to gain the confidence of its customers by initially supplying lower volumes to its customers, and then proceeding to supply higher volumes and expanding the product offerings, once the relationship has been established. It established relationship with its existing customers also presents it with cross selling opportunities. The Company attribute its success to date in part to its strong customer base and also intends to rely on such customer base as a driver of its future growth and help expand its market share. It has focused on quality, ability to respond to any demand volatility with agility, ability to maintain consistent supply of its products, ability to work with its customers from the product conceptualisation stage, and the price competitiveness of products in order to help it establish and maintain long term relationships with customers. EDL strives to innovate and offer value added and technologically advanced products and solutions to its customers. By doing so, it seeks to deepen its customer relationships with the objective of becoming their preferred suppliers.

Key manufacturers in the fast-growing RAC and SDA manufacturing industries: EDL is the second largest RAC ODM manufacturer in India in terms of number of units (indoor units + outdoor units) manufactured in Fiscal 2023 through the ODM route. The Indian RAC industry has grown at a rate of 8.8% in the last five years (Fiscal 2018 to Fiscal 2023) in volume terms and at a rate of 11.2% in value terms, despite the disruption due to the COVID-19 pandemic which impacted two consecutive seasons for the industry. The Indian RAC industry is forecasted to grow at a rate of 12.1% by volume and 15.1% by value from Fiscal 2023 till Fiscal 2028. Further, considering the potential of the Indian SDA industry, it capitalised on its existing manufacturing infrastructure to strategically expand its operations in the SDA market, and currently design and manufacture induction cooktops, mixer-grinders, and water dispensers. Further, increased consumer spending on modern kitchen appliances as a result of an increasing number of working women and a busy lifestyle, rising awareness of indoor pollution, and rising demand for innovative smart electrical appliances are the key drivers for the induction cooktops in India. The market for induction cooktops is expected to be around 3.4 million units in Fiscal 2023 and is projected to grow at a rate of 5.9% over the next five years to reach 4.3 million units in Fiscal 2028. The water dispenser market in India is estimated at 0.38 million units in Fiscal 2023 at a value of Rs.2.7 billion, which is expected to grow at a rate of 4.8% over the next five years to reach 0.48 million units in Fiscal 2028.

From the ODM business perspective, the Indian RAC and SDA manufacturing industries pose higher barriers to new entrants. Typically, integration into the supply chain of the RAC and SDA brands involves a long gestation period, as such integration often entails a lengthy approval process and requires longterm relationships with them to be developed and maintained over several years. Given the nature of the products being manufactured and the complexity of the manufacturing processes involved, RAC and SDA ODM companies need to have strong technological expertise, with the ability to continually innovate in a cost-efficient manner and deliver quick turnaround times. High initial capital expenditure and investment in R&D provide economies of scale to existing RAC and SDA ODM companies such as the Company in the long term, further disincentivising new entrants.

Advanced vertically integrated manufacturing operations with product portfolio aimed at capturing the full spectrum of the RAC and SDA value chain: EDL has the highest amount of backward integration for RACs at a single location, that has been grown within the same company organically in India. Its products and corresponding components are manufactured within the same location, which helps eliminate costs typically incurred in transportation of parts between facilities. Its manufacturing facilities located at Dehradun, Uttarakhand and Bhiwadi, Rajasthan have an aggregate annual manufacturing capacity as on March 31, 2023 to manufacture up to (i) 0.90 million IDUs, 0.66 million ODUs, 0.36 million ODU Kits and 0.42 million WACs, and (ii) 0.11 million water dispensers, 1.2 million induction cooktops and 0.30 million mixer grinders, and components thereof. In addition, the annual manufacturing capacity of the Sri City Manufacturing Facility as on December 15, 2023, is (i) 0.66 million IDUs and 0.66 million ODUs, and (ii) 0.65 million induction cooktops, and components thereof.

In addition to the manufacturing and assembling of RACs and SDAs, EDL also manufactures various RAC and SDA components, thus facilitating the backward integration of its manufacturing operations. In addition to diversifying its revenue streams, manufacturing of components has enabled it to be an integrated solutions provider and accordingly, allows it to cater to all aspects of the RAC and SDA manufacturing value chain. The Company offers customised manufacturing solutions which range from assembly-only to near-complete integrated manufacturing which may only involve external sourcing of compressors and RAC motors, depending on the client requirements, with the endeavour to capture the entire product value chain. Further, its current RAC product offerings enables it to offer further customisation to RAC brands in terms of completely built-up units or IDUs and ODUs separately.

With EDL’s manufacturing operations being concentrated within Dehradun, Uttarakhand, Bhiwadi, Rajasthan and Sri City, Andhra Pradesh, it is in a position to regulate and monitor its operations more closely, assisting it in its object of lowering operational costs and maintaining efficient logistics management. In addition, its manufacturing facilities are strategically located to facilitate transportation of products to its customers within India, which helps in better utilization of plants as any demand variability from one customer can be offset by another in the same facility. Its integrated manufacturing capabilities, paired with its continued focus on innovation has positioned it to leverage industry tailwinds. Its manufacturing and design capabilities allows it to develop, design and manufacture models of RACs of varying designs and technical specifications, including various energy ratings specified by the BEE. Further, its diversified product portfolio of RACs and SDAs, and RAC and SDA components enable it to cater to the nearly entire RAC and SDA manufacturing value chain.

Robust product development and design optimisation capabilities: EDL relies on its integrated location-focussed manufacturing operations, product development and design capabilities, and its focus on quality and cost-efficient manufacturing processes to achieve customer satisfaction, foster customer loyalty and accordingly, generate repeat business. The evolution of its product portfolio and its ability to provide customised manufacturing solutions to its customers have been driven by its product development and design capabilities. In addition, it also utilise various advanced software programs such as CoilDesigner and Siemens NX, which has helped enhance its design capabilities. The R&D efforts are focused on (i) development of new products and improvement of the quality of existing products; (ii) improving design and engineering capabilities, (iii) improving manufacturing processes, and (iii) improving quality control processes, including by undertaking performance and reliability validation tests of various products and product components. EDL is the one of the initial Indian RAC ODMs to design and manufacture WACs (both fixed speed and inverter models) with R32 refrigerant. Its technical experience is particularly relevant in its efforts to achieve cost efficiencies, while simultaneously maintaining the quality of the product. In this regard, its know-how in plastic, metallurgy, electronic engineering and refrigerants which has been developed over time and has been strengthened by the efforts of its R&D team, has contributed significantly to its efforts to stay ahead of its competition and retain customers. The Company has a dedicated R&D team comprising of 57 full time employees, as on September 30, 2023, which grew from 30 as on March 31, 2021. In addition to improving manufacturing processes and developing product portfolio, its R&D capabilities are key to its ability to provide customised solutions with consistency. There have been various instances in the past where EDL has worked with the customer from the product concept design stage itself and has actively participated in designing the final product.

Experienced Promoters supported by senior management team with proven track record of performance: EDL is led by a qualified and experienced senior management team, who are supported by a qualified team of managers and other employees. Its Promoters have substantial industry knowledge and extensive managerial experience in this sector, with cumulative work experience of over 100 years. Its Promoters have a track record and a demonstrated ability to create, build and grow businesses, including the Company, EPACK Polymers Private Limited and EPACK Prefab Solutions Private Limited. It credits the experience and leadership of its Promoters as having played a role in its growth and development. It also attributes its growth in part to its initiatives relating to the development of its human resources, by planning and executing recruitment, training and retention of the employee base. Further, EDL credits its relationships with its institutional investors for enabling it to enhance its corporate governance standards and strategic business advice, which relied on for the growth of the business.

Expanding existing product portfolio, including RAC and SDA components product portfolio: EDL has, since its inception, sought to diversify its portfolio of products. Accordingly, while it seeks to continue to strengthen its existing RAC product portfolio, it intends to further diversify its SDA product portfolio with products with a focus on increased growth and profitability. In addition, it intends to expand its SDA product portfolio with products such as hair dryers, induction water heaters and nutriblenders, tower fans, kitchen chimneys and dual ICTs. This is intended to also help it diversify its business and reduce its dependence on its RAC products, the demand of which is seasonal unlike SDAs, the demand of which remains relatively consistent through the year.

Considering the low penetration of RAC manufacturing operations in south India, those brands that do not intend to set up manufacturing operations in south India but intend to cater to the south Indian market from more localised manufacturing operations, may offer ODM/OEM opportunities to companies like EDL. It intends to leverage its components product offerings with these brands may offer component opportunities. Further, it intends to rely on its technological capabilities to provide customised and innovative components and solutions to these brands. Further, evolving customer requirements would result in continued demand to evolve its existing products and expand its product portfolio to meet these requirements. The Company intends to draw on its experience, market position and ability to deliver quality products to customised foray into such other product offerings.

Continue to drive operational efficiencies through expansion of integrated manufacturing capabilities and continued investment in R&D infrastructure: EDL intends to continue to invest in manufacturing infrastructure and to enable further innovation, improve its operational efficiencies, increase customer satisfaction and improve sales and profitability. In addition, it will focus on optimizing and automating its manufacturing processes to improve returns, while ensuring that its strategies are aligned with its current environmental, social and governance objectives. It constantly endeavors to reduce the costs of its operations while ensuring the quality of its products.

The Company also intends to enhance its research and development capabilities which provide it with a competitive advantage with respect to quality, product development and cost, as well as to explore sustainable cost improvement initiatives for its operations. It aims to identify opportunities to implement manufacturing improvements and will dedicate R&D resources to enhance its manufacturing processes and improve its cost efficiencies. EDL intends to rely on its investment in R&D and expansion of its R&D team to enable it to capitalize on long-term growth opportunities, and help it align ourselves with anticipated demand its product segments and market, and better position itself to meet the evolving requirements of its customers.

Increase wallet share with existing customers and continued focus to expand the customer base: EDL’s customers comprise various established companies including, inter alia, Blue Star Limited, Daikin Airconditioning India Private Limited, Carrier Midea India Private Limited, Voltas Limited, Havells India Limited, Haier Appliances (India) Private Limited, Infiniti Retail Limited, Panasonic Life Solutions India Private Limited, Godrej and Boyce Manufacturing Company Limited, Bajaj Electricals Limited, BSH Household Appliances Manufacturing Private Limited, and Usha International Limited. It attributes the long-standing relationships that it has enjoyed with its customers over the years and the repeat orders received from them in part to its market position, and key to its objective to be a preferred supplier to its customers. EDL sees potential to increase the wallet share of its existing customers on an ongoing basis by way of innovating and cross-selling additional products to existing customers.

The Company intends to rely on its continuing R&D endeavours and its reputation for quality and innovation to help increase its wallet share and product portfolio with existing customers. It has built long-standing relationships with some of its customers. Going forth, EDL intends to continue to leverage its sales and marketing network, diversified product portfolio and its industry standing to establish relationships with new multinational, regional and local customers and expand its customer base.

Management Profile:

Bajrang Bothra is the Chairman and Whole-time Director on the Board of Company. He oversees the business operations and management of Company. He has a master’s degree in commerce from Shri Ram College of Commerce, University of Delhi, Delhi. He has approximately 27 years of experience in the electronics manufacturing sector. He is currently the chairman of the MSME council of the Consumer Electronics and Appliances Manufacturers Association (“CEAMA”) (and a co-opted member of CEAMA executive committee), a patron of the Jain International Trade Organisation Administrative Training Foundation and the trustee of Bhagwan Mahavir Relief Foundation Trust.

Laxmi Pat Bothra is a Non-Executive Director on the Board of Company. He holds a diploma in mechanical engineering from Board of Technical Education, Delhi. With approximately 27 years of experience in the electronics manufacturing sector. He supports the overall administration of our Company.

Sanjay Singhania is a Non-Executive Director on the Board of Company. He holds a bachelor’s degree in commerce (with major in accountancy) from Gauhati University, Guwahati, Assam and was graded in the first class, and a master’s degree in business administration from Swinburne University of Technology, Victoria, Australia. He has approximately 24 years of experience in the electronics manufacturing sector. He provides support to our finance, accounts, legal, information technology and human resources departments.

Ajay DD Singhania is the Managing Director and Chief Executive Officer of Company. He holds a bachelor’s degree in technology (in electrical engineering) from Regional College of Engineering, Himachal Pradesh University, Hamirpur, Himachal Pradesh, and was placed in the first division, and a master’s degree in business administration from University of Scranton, Pennsylvania. He is a Paul Harris Fellow of the Rotary Foundation of the Rotary International. He has also completed a certificate course in ‘Executing Growth Strategies’ from the Wharton School, University of Pennsylvania, and an executive programme from the Indian School of Business demonstrating his commitment to continuous learning and honing his leadership skills. He has approximately 24 years of experience in the electronics manufacturing sector. He oversees the sales and marketing, production, supply chain management, and R&D departments of our Company.

Nikhil Mohta is a Nominee Director on the Board of Company. He holds a bachelor’s degree in commerce from Shri Ram College of Commerce, University of Delhi, Delhi, and a post-graduate diploma in management from Indian Institute of Management, Ahmedabad, Gujarat. He is currently the senior director of private equity of ICICI Venture Funds Management Company Limited and was previously associated with McKinsey & Company and Carlyle India Advisors Private Limited.

Vibhav Niren Parikh is a nominee of Augusta Investment Zero Pte. Ltd. and a Non-Executive Director on the Board of Company. He is currently a Managing Director at Affirma Capital Investment Advisor India Private Limited. He has been an entrepreneur, investment banker, and private equity investment professional with 22 years of experience in business leadership, client relationships, transaction execution, and investment management at Affirma Capital Investment Advisor India Private Limited, Standard Chartered Private Equity Advisory (India) Private Limited, TPG Growth Advisors (India) Private Limited, AdImpact Media Private Limited, Citigroup Global Markets India Private Limited, ICICI Securities and Finance Company Limited, and Merrill Lynch (Singapore) Pte. Ltd. He graduated with a Bachelor of Business Administration with high distinction from the School of Business Administration, University of Michigan, Ann Arbor.

Jyotin Mehta is an Independent Director of Company. He holds a bachelor’s degree in commerce from University of Bombay, Mumbai, Maharashtra, having graduated with a gold medal for highest marks in accounting and auditing. He is a fellow member of the Institute of Chartered Accountants of India having passed the final examination with third rank, a fellow of the Institute of Company Secretaries of India and a fellow of the Institute of Cost Accountants of India. He has approximately 40 years of experience in the audit and finance. He has previously served as the chief internal auditor in vice-president grade at Voltas Limited, the senior general manager and global head of the enterprise risk management and internal audit group at 3i Infotech Limited, the head – project finance at National Organic Chemical Industries Limited, and as general manager in ICICI Bank Limited.

Kailash Jain is an Independent Director of Company. He holds a bachelor’s degree in commerce from Rajasthan University, Jaipur, Rajasthan and a bachelor’s degree in law from University of Delhi, Delhi. He has previously been awarded with the vice-chairman’s shield while serving as the Regional Provident Fund Commissioner, Delhi. He has approximately 37 years of experience in the civil services and administration sector. He has previously served in the Indian Revenue Services in various designations and superannuated as the Principal Chief Commissioner of Income Tax. He is currently the member of the advisory board of Gyanshree School, Noida, Uttar Pradesh.

Krishnamachari Narasimhachari is an Independent Director of Company. He holds a bachelor’s degree in commerce from University of Delhi, Delhi, a master’s degree in commerce from University of Delhi, Delhi, and a post graduate diploma in human resource management from Indira Gandhi National Open University, New Delhi. He is an associate of the Indian Institute of Bankers and has received an award in general business (finance) from the University of California. He has approximately 39 years of experience in the banking sector. He has previously served as the managing director of State Bank of Mysore and retired as the deputy managing director at the State Bank of India.

Priyanka Gulati is an Independent Director of Company. She is an associate of the Institute of the Chartered Accountants of India. She was awarded the Outstanding Woman Entrepreneur of the Year at the third FLO Women Awards of 2017-2018 by FICCI, and the Business Woman of the Year at the Future Women Leaders Summit and Awards 2018. She has approximately 17 years of experience in handling managerial functions. She is currently a partner at Grant Thornton Bharat LLP and has previously served as a director in Manthan Management Solutions Private Limited and a manager in Accenture Services Private Limited.

Sameer Bhargava is an Independent Director of Company. He holds a bachelor’s degree in engineering (mechanical) from Bangalore University, Bengaluru, Karnataka, and a master’s degree in business administration from R.A. Podar Institute of Management, University of Rajasthan, Jaipur, Rajasthan. He has approximately 36 years of experience in the heating, ventilation and air conditioners, precision engineering, and white goods manufacturing sectors. . He has previously served as the vice-president in Highly Electrical Appliances India Private Limited, assistant director – strategic sourcing in Carrier Airconditioning and Refrigeration Limited, senior manager – commodity and finished goods in Whirlpool of India Limited, at the National Engineering Industries Limited (NBC Bearings) and Electrolux Kelvinator Limited (formerly Maharaja International Limited).

Shashank Agarwal is an Independent Director of Company. He holds a bachelor’s degree in engineering (mechanical) from Manipal Institute of Technology, Karnataka. He has approximately 14 years of experience in the marketing sector. He is currently the managing director in Salasar Techno Engineering Limited.

Financials:

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Valuation & Opinion:

Company established itself as a leading ODM, primarily focusing on RAC's. They manufacture complete Ac unit under clients brand name catering to domestic and international markets. Recognising the seasonal nature of RAC's demand they have strategically diversified themself into SDA's like induction hobs, blenders, water dispenser etc, providing year round revenue stream. Company is focusing lot on its innovation and technology and also on expanding its networks in various geographies. The company is profitable from past three financial years, the Company reported an exceptional gain of ₹ 317.5 Cr, Looking at the current performance and vision of the company, the company looks fairly attractive for the long term perspective.

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